About the Depreciation Calculator
Depreciation Calculator spreads the cost of an asset, such as a vehicle, machine, computer or piece of furniture, over its useful life. Enter the purchase cost, the value you expect to sell it for at the end, the number of years of use and choose a method: straight line for equal yearly charges, declining balance for larger charges early on, or sum of the years' digits for a middle path. The tool builds a table with the depreciation for each year, the total so far and the book value left. Declining balance offers 125 percent, 150 percent and double declining factors, and it never takes the value below salvage. You can copy the whole schedule as CSV for a spreadsheet. It is meant for learning, budgeting and bookkeeping practice.
Updated September 2026
How to use the Depreciation Calculator
- 1Choose straight line, declining balance or sum of years.
- 2Enter the purchase cost, the salvage value and the useful life in whole years.
- 3For declining balance, pick the factor, for example double declining at 200 percent.
- 4Choose a currency symbol.
- 5Read the first-year charge, then use the table for each year and copy it as CSV if needed.
What depreciation is for
When a business buys a machine that will last for years, it would be misleading to treat the whole price as a cost in the year of purchase. Depreciation spreads the cost over the years in which the asset helps to earn money, so each year's profit reflects a fair share. It is an accounting entry and not a cash payment, since the cash left the business when the asset was bought.
Individuals meet the idea when they wonder what a car is worth after three years, or when they claim a work computer as an expense. The schedule from this tool shows the yearly charge and the value left in the books.
Choosing a method
- Straight line: equal charges, easy to explain, common in financial reports.
- Declining balance: a fixed percentage of the remaining value, so charges are largest at the start.
- Sum of the years' digits: a decreasing charge, less sharp than double declining.
- Pick the same method year after year for an asset so numbers remain comparable.
Reading the schedule
Each row shows the charge for the year, the total charged so far and the book value left. In straight line the book value falls in a straight line. In the accelerated methods it falls fast at first and then flattens. The totals at the top show the total depreciation and the final book value, which should equal your salvage value.
With declining balance, the pure formula never quite reaches salvage. The tool therefore caps a year's charge so that book value stays at or above salvage, and takes the remaining amount in the final year.
Limits and next steps
The tool is not a substitute for your country's tax rules, which often set lives and rates by asset class and may allow special first-year deductions. Use it to understand the shape of each method and to prepare figures before speaking to an accountant.
Related tools: Loan Calculator shows the payments if you financed the asset, Profit Margin Calculator shows how the cost affects pricing, Break-Even Calculator puts depreciation into fixed costs, and Percentage Calculator handles yearly rates and value changes.
Features
- Three methods in one place
- Declining balance at 125, 150 or 200 percent
- Year-by-year schedule with accumulated depreciation and book value
- Salvage value respected in every method
- Copy the schedule as CSV
- Currency symbol picker
- Helpful messages for impossible inputs
- Runs in your browser
Frequently asked questions
What is straight line depreciation?
It charges the same amount every year: (cost − salvage value) ÷ useful life. A 20,000 machine with a 2,000 salvage value and 5 years of life loses 3,600 every year until its book value reaches 2,000.
What is double declining balance?
It is an accelerated method that takes twice the straight-line rate of the opening book value each year. For a 5-year life the rate is 40 percent, so a 20,000 asset loses 8,000 in year 1, then 4,800, then 2,880. The last years are limited so the book value stops at the salvage value.
What is sum of the years' digits?
It gives larger charges early, but falls in equal steps. For 5 years the digits add to 15, so year 1 takes 5/15 of the depreciable amount, year 2 takes 4/15 and so on. With 18,000 to depreciate the charges are 6,000, 4,800, 3,600, 2,400 and 1,200.
What is salvage value?
It is what you expect the asset to be worth at the end of its useful life, either as scrap or resale. Depreciation only spreads the difference between cost and salvage value, so the book value never falls below it. Enter 0 if you expect it to be worthless.
What is book value?
Book value is the cost minus the depreciation charged so far. It is the value of the asset in the accounts and it can be very different from what someone would pay for it on the market.
Which method should I use?
Use the one your accounting policy or tax rules call for. Straight line is the simplest and most common for reports. Accelerated methods suit assets that lose value quickly, such as vehicles and technology. Tax systems often prescribe their own tables, so check with an accountant before you file.
Does the tool include partial years or tax tables?
No. It assumes the asset is bought at the start of year 1 and used for whole years. Mid-year conventions, MACRS tables, units-of-production and Indian income tax block rates are not applied.